For many people the thing they want to buy at the beginning of its independent life, is the car.Buying a good car can not afford one.The car is a necessary means of transportation, especially if it is used to move to the place of work and frequent business trips.For the category of people who do not have enough money for the purchase of the vehicle, the car will output in installments.In fact, this procedure is a loan without interest for the purchase of a particular model of car.
little history
first interest-free loan to buy a car talking at the beginning of the 80s of the twentieth century.During this period one of the major US automakers decided to sell their goods, providing favorable conditions for the payment of their customers.If the person did not have enough money to buy a vehicle, he was offered the opportunity to make some money at once, and the remaining amount is allocated to a certain number of months.This method is improved all the time, and soon the company has become very popular among the competitors, and the world started talking about the first interest-free loan to buy a car - the possibility to buy a car in installments.
bottom line is that the missing part of the money paid for the car company a buyer yourself, but then transfer them to the bank debt.Banking institution to redeem debts not immediately and not the entire amount as a discount.Initially, for the car buyer I had to make at least 30%.The amount of the entry fee can vary, it is dependent on the period for which the installment.
In our country the opportunity to buy a new car installment appeared recently.
Differences installments and credit
credit and installment for the purchase of a vehicle, in essence, are quite similar concepts.It is in any case, borrowing money to buy a car, but if you look, they have some differences:
- terms.The loan is made on a large period, the most common loan agreement of 5-10 years, while the contract of sale of the car hire is usually for a year or even a few months.
- The interest rate on auto loans is generally 15-20%.From advertisements it can be concluded that the installment is issued as an interest-free loan, but buyers should be aware that in fact zero interest rate does not exist, at the conclusion of this agreement is very close to zero, but it is not.Bank employees claim that the installment rate is 0.5% or 1%.
- initial payment.When buying a car on credit, he may be less than 10% of the value of the goods.Sale of cars made in installments when you make an initial payment of at least 20-30%, and in most cases, and 50% of the total cost.
Buying goods on credit involves payment of a large sum at once, while the remaining debt is paid by installments, the entire debt to be repaid in a year or two at most.
Who has the right to sign the agreement
new car hire purchase persons who may be clients of the banks and to enter into agreements on their own behalf.When purchasing products in the showroom and the non-payment of the entire amount of the cost of the machine of the money is extinguished by the company, but the entire debt is transferred to the bank with which the dealer has concluded an agreement.
In any case, the buyer must be capable and adults.In this age of the boundary is calculated taking into account how many years will be the buyer at the time of payment of the last part of the debt.Thus, at the time of the transaction the citizen should not be older than 64 years with the contract installments for one year and not more than 63 years - for two.
main documents required for the transaction
order to buy a car on credit, you must submit to the dealership employee documents.It is much smaller than when you make a loan, and consists of the following securities:
- statement to the opportunity to make payments in installments.
- copy of the passport of a Russian citizen who wants to purchase a vehicle.
- copy of the driver's license of the buyer.
of documents confirming the solvency of the buyer, such as a copy of the employment history or income statement, at the conclusion of this agreement is not required.
Pitfalls
Every person who decided to make the purchase without the presence of the principal value of the vehicle, must understand that the consequences of default in payment of the debt can be serious, until the removal of the machine.Buy a car in installments without interest may be only the citizen who has a stable income.
buyer must understand that it can pay off the debt for only a year or maximum two.To avoid making payments impossible.At the conclusion of the contract a schedule of making installment payments.If the person who is the buyer of the vehicle, can not make a payment, it is threatened not only the charge of default interest, and retraining in new loan.Most often in the contract there is a clause installments, according to which the default of payment of the sum of at least a day automatically a contract for car loan at the rate of not less than 15%.
How are the conditions of payment by installments
If the buyer lacks a certain amount for the implementation of their dreams, he can buy a car in installments.The contract signed with the dealership, which is commercially available vehicle.Terms largely depend on the arrangements of salon management with banking institutions, as well as how much auto ready to pay the bank for providing this opportunity for their customers.
Since interest-free loan, in fact, does not exist, the buyer should understand that at least half a percentage point, but the motor alone pays the financial institution.There are also conditions that the buyer will have to perform for the conclusion of the above agreement.The availability of insurance.Installment plan, in essence, is the product of three organizations: the showroom, the banking institutions and insurance companies.
Under favorable conditions the action is usually subject to a specific vehicle model, which chooses the dealer.Then, in the "game" is entering a bank with which the car dealership established partnership relations.Banking institution pays for a specific model for a discount, and in agreement with the buyer installments indicated the total price of the goods.That difference between the total value of cars and the discounted price is the real income of the bank for the transaction.
most common when buying auto insurance is required that the customer car hire will cost 2-3% more expensive.
Additional costs
to sign the agreement during the interest-free loans for buying a car is necessary to issue an insurance policy.Major insurance companies cars in Russia - "Hull" and "insurance".The sums that will be required to pay will depend on various factors: the make and model of car and model year.High premiums are determined for the expensive luxury cars, as well as sports cars.
Besides spending on car insurance installments will require additional costs for the issue of bank accounts for making payments.It's a waste of $ 10 to 20 thousand rubles for the opening of bank accounts and the production of cards.
Purchase / used car in installments
According to experts, the vehicle immediately after the exit from the cabin loses 20% of its total cost, and in a few years - half of the amount.There is nothing unnatural in the human desire to buy a used car.The ability to purchase goods on credit cars, many banks provide, as well as the sellers themselves used vehicles.Banking institutions set the age limit car buyers, individuals provide this opportunity regardless of model year cars.Installments bank provides, in cases when the age of the machine domestic production - no more than 5 years, and foreign - no more than 10.
Cars were purchased in installments through the conclusion of the contract of sale marked "installments".When making a transaction is necessary to specify the real value of the goods, so that when you have problems with payments do not have to lose money.
profitable to installment
acquisition vehicle for the interest-free loan or in installments beneficial only for the category of people who have a stable good income and pay the desired amount of time.Anyone who has delayed payment of the debt, can get into hopeless bondage.
addition to the risk, installment has only positive side: simplified procedure to conclude the agreement, you must submit a minimum of documents for consideration of the application, the term of payment is small, allowed early repayment of debt.
lending with a special grace period
legislation provides for a program with which you can buy a car in installments with the so-called grace period.It works when you open an account with the ability to use a plastic card.With the car buyer for a certain period of the contract shall not be charged interest on the loan.In addition, it is possible to make any amount, even if they are significantly higher than those specified in the schedule of payments.
Typically, such a grace period lasts for one year, and if the buyer pays the full amount of the cost of the car during this time, in fact it turns out that he bought a car in installments.
